NSU, Avera partnership saves school nearly $350,000

Northern State University is saving more than $343,000 after accepting a bid package from Avera Health Systems that would provide health services to students at no cost.

A bid was placed out after the previous contract — also with Avera — was set to expire at the end of the academic year, said Rhoda Smith, vice president for student affairs.

The previous contract cost Northern $68,771 each year for the previous five years, Smith said. The money was taken from the general activity fee paid by students each year, she said.

As a state school, Smith said Northern is obligated to take the lowest bid it received.

"We were required to take the lowest bid, and clearly zero was the lowest you can go," she said.

The previous contract was established with Aberdeen Family Physicians before it joined Avera St. Luke's, according to an emailed statement from Avera St. Luke's CEO Todd Forkel. The no-cost-to-students bid was submitted by Aberdeen Family Physicians as a part of St. Luke's.

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In addition, the health organization meets a requirement to provide care to the community.

"The cost of providing this service helps us meet our requirement as a nonprofit to give a certain amount of care as a community and charitable benefit," Forkel said.

The new contract with NSU will also provide students with extended care hours in the health center on campus and access to health care at Avera's FastCare clinics without charge, Smith said.

The health center, which is part of the remodeling project on the student center, will provide a medical assistant to the registered nurse, she said.

Construction on the student center is on schedule and is expected to be open by the beginning of the fall semester, she said.

Funds from the general activity fee, which students pay along with their tuition, were used to pay for the health costs in the past, Smith said.

She added it isn't likely the fee will be reduced for students. The fee supports a range of student-related activities, including building construction, student government, intramural sports and athletics, among other things.

While Northern President Jim Smith indicated in an emailed statement that the funding will go to other projects selected by students, there are no designated projects yet.

The funds saved from the new contract will remain in the general activity fee, Smith said.

"We're not there yet, so I really don't know what'll be around the corner," she said.